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CIMA Fundamentals of Financial Accounting Sample Questions:

1. Non-current assets can be divided between intangible and tangible assets.
Which THREE of the following are intangible assets?

A) Goodwill
B) Research and development
C) Buildings
D) Land
E) Patent
F) Plant

2. Which one of the following attributes is the most important for any code to possess, in order to be of use in an accounting system?

A) Understandable
B) Secret
C) Concise
D) Unique

3. The format of the financial statements and the disclosure notes are prescribed by accounting standards and Company Law.
Which THREE of the following are headings within the statement of financial position?

A) Profit from operations
B) Non-current assets
C) Equity & liabilities
D) Profit before tax
E) Current assets
F) Cost of sales

4. Which of the following best explains what is meant by "capital expenditure"?

A) Expenditure on the improvement and maintenance of non-current assets
B) Depreciation charges on non-current assets
C) Expenditure on the acquisition of non-current assets
D) Expenditure incurred in the raising of capital

5. Refer to the Exhibit.

A company operates a FIFO system of inventory valuation. Opening inventory at the beginning of the period was 200 units @ £2.80 each. During the period the following movements of inventory were recorded.
The value of the closing inventory at the end of the period and amount charged to the income statement were:

A) Closing inventory £357.50 Income statement £1897.50
B) Closing inventory £360.00 Income statement £2255.00
C) Closing inventory £360.00 Income statement £1695.00
D) Closing inventory £360.00 Income statement £1895.00

Solutions: